Quick answer:
A “light” renovation usually means cosmetic updates with minimal risk to the home’s structure or major systems. A “heavy” renovation involves major mechanical changes, structural work, layout reconfiguration, additions, or anything that increases permits, inspections, timeline, and uncertainty. The heavier the rehab, the more lenders focus on experience, documentation, and contingency planning.
If you’re flipping in Dallas, Tarrant, or Collin counties, understanding these categories helps you scope the project correctly, underwrite time and cost realistically, and avoid surprises during loan approval and draws.
Private lenders categorize rehabs because the rehab level directly impacts:
In plain terms: light rehabs are more predictable. heavy rehabs are less predictable. That difference affects how a lender structures the loan and draw schedule.
A light rehab is usually a property that’s structurally sound and functional, but dated. You’re improving appeal and marketability—not rebuilding the house.
Light rehabs often include:
Typical characteristics of a light rehab:
From a lender’s perspective, light rehabs are easier to underwrite because the scope is straightforward and the risk is contained.
A heavy rehab is when you’re materially changing the house—not just improving it. The work often affects structure, systems, or layout, which increases the number of unknowns.
Heavy rehabs often include:
Typical characteristics of a heavy rehab:
Heavy rehabs can be highly profitable, but they’re also where deals go sideways if timelines slip or scope expands.
A lot of projects fall between light and heavy. Examples:
Many lenders mentally treat these as “moderate rehabs,” and they’ll look closely at timeline, budget, and contractor plan.
If you’re not sure where your project falls, assume the lender will classify it based on:
While every lender is different, in general:
Light rehab loans tend to have:
Heavy rehab loans tend to have:
The lender’s goal is not to make it hard—it’s to ensure the project can be completed without funding gaps.
Whether your rehab is light or heavy, you’ll move faster if you provide:
Also: keep the story simple. If the project is heavy, acknowledge it and show how you’re managing the risk with planning and reserves.
Silverton Capital funds rehab projects across Dallas, Tarrant, and Collin counties. Whether your rehab is light, moderate, or heavy, we focus on the same core things:
If you have a deal you want us to review, apply here:
https://www.silvertoncap.com/apply
The biggest rehab mistake isn’t choosing heavy over light—it’s underestimating what you’re actually doing.
Light rehabs reward speed and clean execution. Heavy rehabs reward planning, reserves, and strong contractor management.
If you classify your project correctly from the start, you can structure the right loan, avoid draw delays, and protect your profit margin.
Flipping in Dallas, Tarrant, or Collin County and need funding?
Apply with Silverton Capital: https://www.silvertoncap.com/apply
This article is for informational purposes only and is not intended to serve as legal, financial, or investment advice. Please consult with a licensed professional before making financial decisions.